data management and architecture design analysis

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DATA MANAGEMENT AND ARCHITECTURE DESIGN ANALYSIS FOR SUPPLY CHAIN FINANCING

IN PT XYZ MULTI FINANCE

By

PAULUS CHOLOT JANALA 22051006

MASTER’S DEGREE in

MASTER OF INFORMATION TECHNOLOGY

FACULTY OF ENGINEERING & INFORMATION TECHNOLOGY

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia

July 2021

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Paulus Cholot Janala STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Paulus Cholot Janala

Student Date

Approved by:

Dr. Ir. Heru Purnomo Ipung M.Eng

Thesis Advisor Date

Dr. Ir. Mohammad Amin Soetomo, M.Sc.

Thesis Co-Advisor Date

Dr. Maulahikmah Galinium, S.Kom., M.Sc

Dean Faculty of Engineering & IT Date

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Paulus Cholot Janala ABSTRACT

DATA MANAGEMENT AND ARCHITECTURE DESIGN ANALYSIS FOR SUPPLY CHAIN FINANCING IN PT. XYZ MULTI FINANCE

By

Dr. Ir. Heru Purnomo Ipung, M.Eng., Advisor Dr. Ir. Mohammad Amin Soetomo, M. Sc., Co-Advisor

SWISS GERMAN UNIVERSITY

In supply chain management, the Principal requires each distributor to have a stock reserve or buffer stock. Buffer Stock is a reserve stock or additional goods in the warehouse that must be maintained to mitigate the risk of running out of inventory. This is to anticipate the inventory of goods as a buffer stock if the sales volume is greater than expected or planned so that the Principal cannot fulfill additional goods at the expected time.

This buffer stock is quite unsettling for distributors because it is a stock that must be available in the warehouse and the quantity must be maintained. The major pain point is that most Distributors have no enough working capital to finance the stock since they have to finance the market credit to Outlets. Therefore, XYZ MULTI FINANCE provides a solution to utilize the buffer stock as a guarantee for distributors in getting additional working capital financing that can be used both for stock and market credit as well, namely through Supply Chain Financing.

Inventory financing in the supply chain is an alternative solution to maximize cash flow by giving distributors time to extend the payment period due to principals, so that distributors have the option to increase business volume and pay interest and all costs incurred up front and pay the loan principal at the end of the credit tenor or periodic principal payments

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Paulus Cholot Janala according to a set schedule. This solution provides benefits for both parties fairly, both for the principal and the distributor. Distributors can maximize working capital, while principals get additional operating cash flow, which minimizes risk throughout the supply chain.

The inventory financing of XYZ MULTI FINANCE is also different from the supply chain financing offered by the Bank. Supply chain financing at banks requires deposits or fixed assets as collateral. Meanwhile, supply chain XYZ MULTI FINANCE only uses buffer stock as collateral and offers a faster disbursement process.

Non-bank financial institutions, such as multi-finance and peer-to-peer lending in Indonesia, are starting to implement new digital technologies to meet the needs of the rapidly growing retail market. The digitalization process in non-banking financial institutions in the country has involved many financial service institutions, creating new and highly varied financial services products in the market. This thesis tries to answer the opportunities and challenges of supply chain financing at PT XYZ Multi Finance as a financial service provider by using architectural design analysis and data management.

This thesis proposes are the integration between Architecture Design Analysis and Data Management through the combination of two of the best known and used frameworks, respectively TOGAF and DAMA DMBOK. We analyzed the relationship between most of the concepts from TOGAF and DAMA DMBOK identifying a common ontology. We identified both methods and mapped the integration for digital transformation

Keywords: Architecture Vision, Business Architecture, Information Architecture, Data Architecture, Data Management, Supply Chain Financing, Principal, Distributor, Working Capital, Inventory Management and Buffer Stock.

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Paulus Cholot Janala DEDICATION

I dedicate this thesis to the my beloved family (Leticia Aimee Janala, Lian Marliana), thanks for supporting me, understanding, and for long sacrifice of time during the writing process.

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Paulus Cholot Janala ACKNOWLEDGEMENTS

I am grateful to God who has given up on me the challenge of completing this proposal. I wish to thank and appreciate my Thesis Advisors Mr. Ir. Heru Purnomo Ipung, M. Eng. and Mr. Dr. Ir. Mohammad Amin Soetomo, M.Sc was particularly helpful in guiding me to completing this thesis toward a qualitative methodology. The members of my thesis advisors interest in a sense of competence was the impetus for my proposal.

I also wish to thank my subordinate in the office that supports me regarding the data we use in this thesis. I would like to thank my classmate who always supports us in completing this thesis on time.

Finally, I would like to thank my spouse. From the beginning, she had confidence in my capacities to not only complete a degree but to complete it with excellence.

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Paulus Cholot Janala TABLE OF CONTENTS

Page

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 6

ACKNOWLEDGEMENTS ... 7

TABLE OF CONTENTS ... 8

LIST OF FIGURES ... 12

LIST OF TABLES ... 15

CHAPTER 1 - INTRODUCTION ... 16

1.1. Background……….. ... 16

1.2. Research Problem ... 17

1.3. Research Objectives ... 18

1.4. Significant of Study ... 18

1.5. Research Questions ... 19

1.6. Scope and Limitations ... 19

1.7. Hypothesis……….. ... 20

CHAPTER 2 - LITERATURE REVIEW ... 22

2.1. Distributor………. ... 22

2.2. Principal……. ... 22

2.3. Supply Chain Fast Moving Consumer Goods Overview ... 22

2.4. Business Model Supply Chain Financing FMCG PT XYZ Multi Finance... 23

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2.5. Business Flow and Business Process ... 28

2.5.1 Business Flow ... 28

2.5.2 Business Process ... 29

2.5.3. Credit Process ... 29

2.6. WAREHOUSE & INVENTORY MANAGEMENT……….30

2.6.1. Challenges in Warehouse Management ... 30

2.6.2. Distributor Resources Planning (DRP) Requirements ... 30

2.6.3. Warehouse Process ... 31

2.6.4. Warehouse Management Activity ... 31

2.6.5. Inventory Management ... 32

2.7. Data Management ... 34

2.8. Enterprise Architecture ... 37

2.9. TOGAF……….…..39

CHAPTER 3 – RESEARCH METHODS ... 41

3.1 Research Objective ... 41

3.2 Research Methods ... 41

3.3 Scope of Study ... 42

3.4 Methodology Framework ... 42

3.5 Type and Sources of Data ... 42

3.6 Analysis Method ... 43

3.7 TOGAF Frameworks ... 43

3.8 Data Management Frameworks ... 44

CHAPTER 4 – RESULTS AND DISCUSSIONS ... 46

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Paulus Cholot Janala Paulus Cholot Janala Paulus Cholot Janala

4.1 Enterprise Architecture Design... 46

4.1.1 Phase A. Architecture Vision. ... 47

4.1.2 Phase B. Business Architecture ... 49

4.1.2.1 B1. Business Information ... 49

4.1.2.2 B2. Organization Structure & Job Description ... 50

4.1.2.3 B3. Business Process ... 50

4.1.2.4 B4. Target Scalability ... 56

4.1.2.5 B5. Expansion Strategy ... 56

4.1.2.6 B6. Target SLA Process ... 56

4.1.2.7 B7. Strategy ... 57

4.1.2.8 B8. Challenges ... 57

4.1.2.9 B9. Critical Point... 57

4.1.2.10 B10. GAP Analysis ... 58

4.1.3 Phase C. Application Architecture & Data Architecture ... 58

4.1.3.1 Phase C1. Application Architecture ... 58

4.1.3.2 Phase C2. Data Architecture ... 61

4.2 Data Management Supply Chain Financing XYZ Multi Finance ... 63

4.2.1 A. Flow Data Process ... 63

4.2.2 B. Enterprise Data Management XYZ Multi Finance... 65

4.2.2.1 B.1. Data Strategy & Maturity ... 65

4.2.2.2 B.2. Data Integration Assessment ... 78

4.2.2.3 B.3. Data Quality Assessment ... 80

4.2.2.4 B.4. Data Analytics Assessment ... 82

4.2.3 C. Data Architecture Distributor Analytics ... 83

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4.3 Technology Architecture XYZ Multi Finance ... 85

4.3.1 IoT Base RFID for Warehouse Management System Architecture ... 88

4.3.2 Alternative Solutions in Inventory Financing at XYZ Multi Finance ... 90

4.4 Validation ... 91

CHAPTER 5 – CONCLUSIONS AND RECOMMENDATIONS ... 94

5.1 Conclusions ... 94

5.2 Recommendations ... 95

5.3 Future Work ... 96

REFERENCES ... 97

CURRICULUM VITAE ... 99

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Paulus Cholot Janala Paulus Cholot Janala Paulus Cholot Janala LIST OF FIGURES

Figures Page

2.1 Supply Chain Cycle………...………….23

2.2 Business Model Canvass Supply Chain Financing XYZ Multi Finance ... 25

2.3 Supply Chain Financing FMCG Business Flow ... 27

2.4 Business Flow Supply Chain Financing ... 28

2.5 Business Process Supply Chain Financing ... 29

2.6 Credit Process Supply Chain Management ... 29

2.7 DRP Requirements ... 30

2.8 Warehouse Process ... 31

2.9 Warehouse Management ... 31

2.10 Warehouse Management Activity ... 31

2.11 Inventory Management Control ... 32

2.12 Minimizing Other Risks in Inventory Management ... 33

2.13 Best Practise Inventory Management ... 33

2.14 Scope of Data Management Function ... 36

2.15 Data Management ... 36

2.16 TOGAF Architecture Development Method – ADM ... 40

3.1. TOGAF in ADM Phases ... 44

3.2 Data Management Framework ... 45

4.1 Preliminary : Framework and Principles ... 47

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4.2 Architecture Vision : Supply Chain Financing XYZ Multi Finance ... 49

4.3 Business Information : Supply Chain Financing XYZ Multi Finance... 49

4.4 Organization Structure & Job Description: HRD XYZ Multi Finance ... 50

4.5 Business Process: Supply Chain Financing XYZ Multi Finance ... 50

4.6 Initiaton & Prospecting: SCF XYZ Multi Finance ... 51

4.7 Analysis & Approval: SCF XYZ Multi Finance ... 52

4.8 Agreement: SCF XYZ Multi Finance ... 52

4.9 Go live & Disburse : SCF XYZ Multi Finance ... 53

4.10 AR Strategy: SCF XYZ Multi Finance ... 53

4.11 Reposes & Sold (Liquidation): SCF XYZ Multi Finance ... 54

4.12 Selling Stock: SCF XYZ Multi Finance ... 55

4.13 Target Scalability: SCF XYZ Multi Finance... 56

4.14 Expansion Strategy: SCF XYZ Multi Finance ... 56

4.15 Target SLA Process: SCF XYZ Multi Finance ... 56

4.16 Strategy: SCF XYZ Multi Finance ... 57

4.17 Challenges: SCF XYZ Multi Finance ... 57

4.18 Critical Point: SCF XYZ Multi Finance ... 57

4.19 GAP Analysis: SCF XYZ Multi Finance ... 58

4.20 Application Architecture : SCF XYZ Multi Finance ... 58

4.21 Application Architecture Enhancement : SCF XYZ Multi Finance ... 59

4.22 Application Journey: SCF XYZ Multi Finance ... 59

4.23 Relationship Stakeholder & Application: SCF XYZ Multi Finance ... 60

4.24 Data Architecture : SCF XYZ Multi Finance ... 61

4.25 Data Authority: SCF XYZ Multi Finance ... 62

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4.26 Data Quality: Data Management ... 62

4.27 Flow Data Process: SCF XYZ Multi Finance ... 64

4.28 Data Architecture Transformation : Data Management ... 65

4.29 Flow Data Identification: SCF XYZ Multi Finance ... 69

4.30 Flow Data Store Location: SCF XYZ Multi Finance ... 70

4.31 Flow Data Integration I: SCF XYZ Multi Finance ... 70

4.32 Flow Data Integration II: SCF XYZ Multi Finance... 71

4.33 Flow Data Security: SCF XYZ Multi Finance ... 71

4.34 Technology Architecture XYZ Multi Finance Part 1……..……….……..86

4.35 Technology Architecture XYZ Multi Finance Part 2 ... 87

4.36 Technology Architecture XYZ Multi Finance Part 3 ... 87

4.37 IoT Base RFID for Warehouse Management System Architecture ... 89

4.38 Three alternative solutions in Inventory Financing at XYZ Multi Finance ... 90

4.39 Historical Data Debtors Inventory Financing at XYZ MULTI FINANCE………93

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Paulus Cholot Janala Paulus Cholot Janala Paulus Cholot Janala LIST OF TABLES

Table Page

4.1 Mapping Data Management XYZ Multi Finance ... 68

4.2 Mandatory Documents Inventory Financing ... 72

4.3 Credit Parameter I XYZ Multi Finance ... 73

4.4 Credit Parameter II XYZ Multi Finance ... 74

4.5 Credit Parameter III XYZ Multi Finance ... 75

4.6 Credit Scoring I XYZ Multi Finance ... 76

4.7 Credit Scoring II XYZ Multi Finance ... 77

4.8 Data Integration Assessment ... 80

4.9 Data Quality Assessment... 82

4.10 Data Analytics Assessment ... 83

4.11 Validation and Implementation EA and Data Management Part 1 ... 91

4.12 Validation and Implementation EA and Data Management Part 2………....92

4.13 Validation and Implementation EA and Data Management Part 3………....92